As artificial intelligence continues to permeate various facets of daily life, the realm of property management stands at a pivotal juncture.
According to industry experts at Bisnow’s Houston Property Management Summit, a successful approach to managing properties lies in reverting to a service-focused mindset rather than treating real estate merely as a product.
Lauren Kelch, CBRE Houston Property Management Market Leader, emphasized the need for the industry to adapt, pointing out that the management of buildings should prioritize tenant service.
With rising interest rates and increased financial distress leading to numerous foreclosures, property managers are stepping up to enhance tenant experiences in revitalized buildings, as highlighted during the event at Omni Houston Galleria.
Adam Rose, Managing Director at Hines, viewed the current distress as a unique opportunity for property management.
Rose noted that once a distressed property is acquired by capital-rich investors, substantial improvements can often be made through the implementation of basic management practices that may have previously been overlooked.
“Does someone pick up when you call the management office? Does someone respond? In a lot of cases, those things are not being done,” he stated, reiterating the necessity of fundamental service elements.
DML Capital, co-founded by Anil Mohammed, has recently acquired several “Class-A-minus” office buildings in amenity-rich neighborhoods, including one of its properties located at 4265 San Felipe, built in 1983.
Mohammed explained their strategy involves reimagining the building’s offerings by removing existing services that overlap with nearby mixed-use developments, like River Oaks District.
“Moving away from established food and shopping options, we will make way for more distinctive amenities,” he noted.
Potential enhancements could include features like putting greens, patio decks, and various community events to create a more engaging atmosphere.
Kelch emphasized the significance of fostering connections within the community, sharing that an apartment tenant is 8% more likely to renew their lease if they develop even a single friendship at their property.
“Don’t do any sort of programming or tenant engagement — don’t even get me started on ice cream socials — unless community is at the center,” she stated firmly.
Highlights from a survey revealed that 74% of residents at Autry Park believe community events contribute positively to their desire to remain at the property, as reported by Shane Cawood, Executive Vice President of Property Management at Moody Rambin.
Located along Allen Parkway, Autry Park has successfully established itself as one of the highest-rent multifamily developments in Texas, with studio apartments starting at $2,428 per month, according to the property’s website.
This rate eclipses the average rent for a three-bedroom apartment in the Houston area, with studio apartments generally averaging around $1,085 per month.
Cawood indicated that managers of the multifamily and retail segments at Autry Park maintain consistent communication, ensuring they cultivate an ideal living environment for residents.
“They’re finding out what the residents are saying about the restaurants, the food there, the noise levels, whatever it is, finding solutions and ways to improve that,” he noted.
The approach includes direct access to management for tenants, offering general managers’ contacts, thereby justifying the premium rental rates.
Even as technology and artificial intelligence increasingly influence property management through online rent payments, tenant searches, and maintenance requests, maintaining personal relationships remains crucial.
Kelch pointed out that while technology effectively manages transactions, it cannot replace the importance of personal connections in managing relationships with tenants.
“The value of implementing data and technology will never outweigh word-of-mouth marketing and personal experience, which justify the investment in quality service,” she stressed.
In a thought-provoking exchange, Kelch shared her reaction to a challenge regarding the ‘return on experience’ by likening it to the value of personal relationships, asking, “Well, what’s the return on your mom?”
This highlights a growing recognition that property management thrives not solely on technological efficiency but on the human touch that builds loyalty among tenants.
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